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NEW YORK (7/22/13)--Moody's Investors Service has upwardly revised the U.S.'s Aaa credit-rating outlook to stable from negative.

The move was made because the federal government's deficit--or "debt trajectory"--has stabilized due to narrowing budget deficits (Bloomberg.com July 19).

"While moderate," growth in the economy is progressing in an environment in which the government has instituted spending reductions and tax increases, the New York-based Moody's said Friday in a statement.

The negative outlook was first assigned in August 2011 when Moody's warned it could downgrade the U.S. for the first time because of concerns the economy was weakening and fiscal discipline was dissipating, Bloomberg said.

This year's fiscal deficit will be the smallest since 2008. The economy is predicted to grow in 2014 at the fastest pace since 2006, said the Congressional Budget Office (CBO).

The U.S. budget deficit likely will fall to roughly 2.1% of gross domestic product in 2015 from 4% this year and 7% in 2012, owing to increased tax revenue and less spending, said the CBO.